US Treasury's Yellen Says Us Economy May See Some Spillovers From China Financial Turmoil If It Leads To Slower Growth In Important Asian Trade Partners; Says Does Not Think Potential Spillovers From China's Turmoil To US Economy Will Be 'Very Large'
Portfolio Pulse from Benzinga Newsdesk
US Treasury Secretary Yellen has indicated that the US economy may experience some spillovers from China's financial turmoil, particularly if it results in slower growth among key Asian trade partners. However, she believes that any potential spillovers to the US economy will not be 'very large'.
January 26, 2024 | 7:19 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The iShares China Large-Cap ETF (FXI) may face volatility due to concerns about China's financial turmoil and its potential impact on large Chinese companies.
Given that FXI tracks large-cap Chinese companies, any negative news about China's financial stability can lead to investor concern and potential sell-offs in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may see limited short-term impact from China's financial turmoil, as Yellen expects any spillovers to the US economy to be minimal.
SPY, which tracks the S&P 500, is diversified across various sectors and companies. While there may be some concern over global economic stability, Yellen's statement downplays the risk, suggesting a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50